The Congress party has raised serious questions about ICICI Bank’s explanation of payments made to SEBI chief Madhabi Puri Buch. Allegations have been made about a conflict of interest, with Congress suggesting that Buch earned substantial amounts from the bank during her tenure. Congress spokesperson Pawan Khera has asked for clarity on the matter, claiming that ICICI’s explanation does not fully address their concerns.
ICICI Bank’s Clarification Under Scrutiny
ICICI Bank issued a statement defending their actions, claiming that the payments to Buch were retirement benefits, not salary or stock options. However, Congress has pointed out inconsistencies in this explanation, questioning the frequency and amount of these payments. They argue that the retirement benefits Buch received seem unusually high compared to her salary.
Discrepancies in Payment Details
Congress has highlighted discrepancies in the payments made to Buch. While ICICI Bank claims these were retirement benefits, Khera noted that the amounts varied significantly over the years. He questioned why the benefits were so much higher than her average annual salary, raising doubts about the transparency of the bank’s policies.
Concerns Over ESOPs and Taxation
Khera also questioned ICICI’s handling of employee stock options (ESOPs) and taxation. According to ICICI’s publicly available policy, former employees can exercise their options within three months of termination. However, Buch is alleged to have exercised hers much later. Khera also asked why ICICI paid the Tax Deducted at Source (TDS) on Buch’s ESOPs on her behalf, suggesting this might indicate preferential treatment.
Congress Demands Prime Minister’s Response
Congress has called for Prime Minister Narendra Modi to address the issue, given his role in appointing Buch as SEBI chief. Khera has argued that the Prime Minister should clarify the situation, especially as a former BJP MP has also accused SEBI and its chairperson of wrongdoing.
Buch Faces Further Allegations
Amid these controversies, Buch is also under scrutiny for alleged investments in offshore funds linked to the Adani Group. These allegations, made by Hindenburg Research, have added to the mounting pressure on Buch, who has denied any wrongdoing.
The Role of SEBI and ICICI
The Securities and Exchange Board of India (SEBI) has long been pivotal in regulating India’s capital markets. Its chairperson holds a crucial position in ensuring market integrity. ICICI Bank, one of India’s largest private sector banks, has faced its share of controversies.